It notes the FFA market showed further declines on Wednesday morning with November 2016 paper trading at approximately $9,000 per day.

The Snowdon deal comes after capesize scrapping slumped to “nearly non-existent” levels during the second half of 2016, according to a report from JP Morgan. Only one capesize per month was scrapped during the third quarter of 2016, it said.

Greek broker Intermodal says the addition of a new ballast water treatment regulation and the absence of a substantial freight market recovery should bring a robust level of scrapping through 2017.

“Given that there are approximately 57 million dwt (856 vessels) that are older than 20 years this does not seem too far fetched,” Intermodal’s Timos Papadimitriou wrote.

It notes the FFA market showed further declines on Wednesday morning with November 2016 paper trading at approximately $9,000 per day.

The Snowdon deal comes after capesize scrapping slumped to “nearly non-existent” levels during the second half of 2016, according to a report from JP Morgan. Only one capesize per month was scrapped during the third quarter of 2016, it said.

Greek broker Intermodal says the addition of a new ballast water treatment regulation and the absence of a substantial freight market recovery should bring a robust level of scrapping through 2017.

“Given that there are approximately 57 million dwt (856 vessels) that are older than 20 years this does not seem too far fetched,” Intermodal’s Timos Papadimitriou wrote.